26th May 2016 - Newton Investment Management has announced that it is reducing the yield target on its Asian Income fund.
From 26th May 2016, the fund's overall yield target will fall from being at least 135% of the income generated from its benchmark index (the FTSE Asia Pacific ex Japan) to at least 125%. In addition, the yield threshold for potential investments has been cut from 100% of that achieved by the benchmark to 85%.
Ryan Lightfoot-Brown, research analyst at Chelsea, commented: “The reduction in yield target and threshold means that the number of potential companies in which the fund can invest will increase by around 25%, which we think is a good thing.
“The fund was taken on by Rob Marshall-Lee last year, when Jason Pidcock left the company to join Jupiter. We know that Jason found the restrictions a slight hindrance to the fund and Rob obviously feels the same way. Whilst the yield may fall slightly, we still believe that a decent level is more than achievable.”
Newton Asian Income has a generic 'hold' rating from Chelsea.
Jason Pidcock has also launched a new Asian Income fund at Jupiter, which has a Chelsea generic 'buy' rating.